Preventing Insurance Fraud

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General fraud

Saga is committed to proactively combat and reduce instances of fraud, whether opportunistic or part of a wider organised crime network. System controls and procedures are in place to detect instances of fraud. Saga also liaises with industry bodies and government agencies to share fraud data. Our employees are trained to identify evolving fraud risks.

You can make a report about fraud at the following address:

reportfraud@saga.co.uk

Alternatively, if you have information regarding other types of fraud you can contact Action Fraud:

Telephone: 0300 123 2040

Text phone: 0300 123 2050

Insurance fraud

According to the Association of British Insurers, the cost of fraudulent claims is passed onto honest policyholders who end up paying higher premiums.

The two main types of insurance fraud are:

Application fraud

Application fraud occurs when a policy holder or applicant either misrepresents or deliberately fails to disclose material facts at policy inception for financial gain.

Types of application fraud include:

Misrepresentation / Non-Disclosure – This can include parents taking out insurance policies as the policy holder when their child is actually the main driver, or failing to disclose all accidents/convictions.
No Claim Discount Fraud – Providing false details to acquire a greater entitlement of No Claim Discount.
Payment Fraud – When somebody takes out a policy with no intent to pay. This could be using stolen payment details.
Ghost Broking – Ghost Brokers are fraudsters who sell drivers discounted motor insurance without Saga's permission; Saga only sells direct to its customers, or via price comparison websites. Policies written by a Ghost Broker are not worth the paper they are written on. Policies are bought from legitimate insurance companies using false information and then doctored before being sold on to customers. Fake policy documents designed to look like they have been issued by legitimate insurance companies are created and sold on to customers. The consequences of buying a fake policy can be the same as having no policy at all.

Claims fraud

Claims fraud is, quite simply, fraud involving claims. There are 2 categories:

Fictitious losses, incidents or injuries – Where a claim is submitted for a loss or incident which did not occur.
Material misrepresentation or exaggeration of a claimed loss or personal injury – Where a genuine loss or incident occurs but the claimant deliberately misrepresents or exaggerates the extent of the claim for financial gain.